Supreme Court Clarifies VAT Group Rules and Time of Supply Interplay

• Supreme Court ruled on The Prudential Assurance Company Ltd v HMRC case regarding VAT groups and time of supply rules interaction
• The case addressed whether VAT should be charged when a company leaves a VAT group between performing services and issuing invoices or receiving payment
• Section 43 of VAT Act allows corporate group companies to be treated as single entity for VAT purposes with intra-group supplies disregarded
• Court had to determine if VAT liability depends on group membership at time of service performance or at time of invoice/payment
• Case involved Silverfleet providing investment fund management services to Prudential while both were VAT group members before Silverfleet later left the group

Source: kennedyslaw.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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